ALL ABOUT BUILDERS RISK INSURANCE

 
 

What is Builders Risk insurance?

Builders Risk Insurance is specially designed to protect buildings and structures that are being built or renovated. Not only does it cover the cost of construction additionally covers the equipment used at the project. Builders Risk Insurance can include protection for materials, equipment added to the property, such as elevators and HVAC systems, labor costs and expenses, as well as temporary structures such as scaffolding and even landscaping.

Who needs Builders Risk insurance?

This depends on who will perform the construction. Will the owner be the GC (General Contractor), or will they hire a GC? These are the two most common situations. In both positions, the owner or the GC should obtain a Builders Risk Insurance. Where there is a lender, they will require coverage before the loan is funded. The coverage will name the lender as an additional insured in case of a loss.

TYPES OF INSURANCES

 
 

What is covered by a Builders Risk Insurance?

In addition to the materials, a Builders Risk Insurance also helps to cover the following items:

Property Replacement

The most important coverage Course of Construction Insurance provides is replacement cost equal to the value of the property lost. Having the right valuation for the project is extremely important.

Profitst

Builders Risk Insurance covers more than just labor, materials and equipment that are needed for new construction project, it can cover profits as well. General Contractors can be reimbursed for a percentage of profit earned as of the date of the loss

Debris Removal

The cost resulting from cleaning up debris after a construction accident can be enormous. Builders Risk Insurance will cover those costs up to the amount listed in the policy.

Building Ordinance or Law

Building codes can change a great deal from the start of the project through its completion. In the construction project and causes a delay or loss in profits, Course of Construction Insurance will help cover that loss.

Temporarily Stored Material or Equipment

Contractors will often store important expensive material and equipment off-site that will be used in the course of the project. With Builders Risk Insurance these items will be cover while they are in storage or in transit to the job site.

Valuable Papers and Electronic Data

Contractors use blueprints, schematics, and other paper and electronic documents and data in the course of conducting their business. Builders Risk Insurance can restore and replace important documents and electronic data that were lost in a covered risk.

Contamination Cleanup and Removal

When a fire or other covered cause of loss occurs at the project site, pollutants may be released causing damage to land and/or water; Course of construction Insurance will cover you from these events..

How it works

Step one

Contact Us for Free Quote.

Step two

We shop A-rate insurance carriers to find you the best coverage at the lowest price.

Step three

We review the best options for your company and let you decide on a policy.

Step four

Set up a payment plan.

Step five

Receive your certificate and your coverage begins.

How much does Builders Risk Insurance cost?

We work with the TOP 3 companies that represent 80% of the market for Course of Construction Insurance. Our alliance with these carriers guarantee better rates for your policy; However, on average, the Builders Risk Insurance policy cost ranges anywhere from 1% to 5% of the total construction cost.

The exact cost depends on the following factors:

Cost of the Project

This will be the single most important item in determining your cost. The following factors will also play a role in your final cost.

Type of Construction

Frame structures are more susceptible to fire and wind damage than masonry or metal constructions and, therefore, more expensive to insure.

Geographical Location of Project

Projects on the coast are subject to a greater risk of loss from hurricanes, wind, and flooding than inland locations. Accordingly, these policies will be more expensive. FEMA has a map of high-risk areas CLICK HERE.

Length of the Project

It stands to reason that if the project takes 90 days to complete, chances are the damage by fire and other natural disasters will be less than with a project lasting a year.

Exclusions in Policy

Some contractors want the basic and cheapest policy; This can be expensive in the long run. You need to discuss with your agent various coverage options to see what is right for you. Other optional coverages may include soft costs, earthquake coverage, flood, legal fees, license fees, and/or additional expenses that cover business income.

Some examples of Builders Risk Insurance Cost

State
Amount of Coverage
Square feet
Type
Term (months)
Premium
AL $115.000 2109sqft New Constrution 12 $620
MO $100000 1200sqft Rehab 12 $518.75
MO $10000 1200sqft Rehab 12 $541.75
MO $100000 1600sqft Rehab 12 $518.75
TN $260,000 2005qft New Constrution 12 $650
TN $260,000 1995qft New Constrution 12 $650
TN $260,000 1540qft New Constrution 12 $650
CA $653000 2,700qft New Constrution 12 $2292.03
CA $653000 2,700qft New Constrution 12 $2292.03
NY $200000 900qft Rehab 6 $616
CA $140000 600qft Rehab 6 $599
AR $100000 1257qft Rehab 6 $599
TX $410000 2042qft Rehab 12 $956

Protect the unexpected

Construction Materials

HVAC Equipment

Labor Costs

Cribbing

Scaffolding

Signage

Plants and Trees

Falsework

Fencing

Vandalism

Theft

Fire

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